Avalanche (AVAX) – Sustaining a sturdy bearish bias, and could experience further depreciationsPosted on Wednesday, September 21 2022 at 8:49 pm GMT+0000
Avalanche (AVAX) is extending the one-and-a-half month decline beneath the exponential moving averages and the descending trendline stretched from the August 8th peak.
The negative charge of the 20- and 55-day exponential moving averages is backing the bearish picture in the coin and the momentum indicators are clearly leaning to the downside. The fresh bearish intersection of the TSI with its signal line in the negative territory and the ROC’s deceleration beneath its equilibrium mark are demonstrating a tendency of the coin to push lower.
Hence, if the price maintains its current trajectory, it is expected to soon meet the 161.8% Fibonacci extension level of the latest upside corrective wave at 14.67, residing near the important June 19th low of 13.72. A break of the latter could be a tough blow for the price, as it could in the aftermath sink to the 11.64 support, and most likely towards the 261.8% Fibonacci level of 10.21.
On the other hand, if buyers re-emerge and steer the price higher, the 20-day exponential moving average at 18.79 could act as a prompt deterrence ahead of the descending trendline. Clearing the latter, the price could propel toward the 21.01 – 21.95 area linking the 55-day exponential moving average and the September 12th high. If this barrier fails to keep growing bullish pressures at bay, the rally will accelerate towards the July 20th high at 26.33.
In brief, Avalanche is sustaining a bearish picture in the medium-term, with 14.73 – 13.72 remaining the key area, as a move below it will encourage further price deterioration.